Financing a Car With an Active Bankruptcy Might Not Be Possible With Certain Lenders

There are many advantages to filing for bankruptcy but also a few downfalls worth noting. While bankruptcy can help individuals and businesses start fresh financially, allowing for some or all of their debt to be discharged, it will undoubtedly have a negative impact on their credit score.

You see, bankruptcies remain on your credit report for approximately seven years which means lenders like those who issue auto loans, will be able to see it. Depending on their policy and the state of your credit score, this may or may not impact your chances of getting approved for auto financing.

Carvana is one lender that does not approve individuals with an active bankruptcy.

According to Carvana’s website, you cannot have an active bankruptcy on your record if you intend on applying for Carvana financing (1). An active bankruptcy essentially means your case is still open and you have yet to emerge from the proceedings.

Now, although Carvana currently isn’t accepting customers with an active bankruptcy who are looking to finance a vehicle through the company, you can apply once you emerge. There is no guarantee, however, that you’ll be approved as your credit score and many other factors will be weighed to determine if you qualify for lending.

It is also worth noting that Carvana does allow individuals who have a Chapter 7 or Chapter 13 bankruptcy that has either been discharged or dismissed apply for lending. The company says that if this is reflected on your credit report, you won’t be required to supply additional documentation.

If you wish to finance a vehicle and you either filed for bankruptcy or are considering filing, check with the auto company beforehand to learn more about how your bankruptcy will impact your ability to apply.

Considering filing for bankruptcy in Alabama but not sure if it’s the right option for you?

If you’ve been thinking about filing for bankruptcy but worry about the impact it will have on your credit, now would be a good time to search for attorneys near me. A Margaret, AL bankruptcy lawyer can help you weigh your options and understand the entire process, from start to finish.

Many people are hesitant to file for bankruptcy simply because they don’t fully understand it. If you’re someone who might benefit from bankruptcy but need more information, contact Hill, Gossett, Kemp & Hufford, P.C. to speak with an experienced Margaret, AL bankruptcy attorney.

Should you have any questions regarding the topics discussed in this article or have a legal concern, you can also call 800-672-3103 for assistance.

Disclaimer: No representation is made that quality of legal services provided is greater than the quality of legal services provided by other attorneys.

Hill, Gossett, Kemp & Hufford, P.C. can be reached at:

Moody Office

2603 Moody Parkway, Suite 200

Moody, Alabama 35004

Phone: (205) 640-2000

Website: www.hwhlawgroup.com

Leeds Office

7900 Parkway Drive

Leeds, AL 35094

Phone: (205) 699-5500

Springville Office

6441 U.S. Highway 11